When baby boomers (the roughly 75 million people born between 1946 and 1964) came of age in the United States, millions chose construction as a career path. The problem now, according to Associated Builders and Contractors (ABC), is that more than 20 percent of construction workers are 55 and older, which means a wave of retirements is on the horizon as fewer younger people enter the field.
The question of how to recruit and retain younger workers has become paramount across the construction industry. Upskilling — when employees complete education and training to expand their skill sets — is an answer. Technology makes it easier than ever for construction companies to incorporate upskilling into their business practices, allowing them and their employees to reap the benefits.
In a 2024 Arcoro survey of nearly 1,500 construction firms, about 24 percent said they hadn’t implemented any upskilling programs, an omission they make at their own peril. After all, employees not offered upskilling opportunities may feel their employers are not invested in their career paths. That can cause them to jump to a workplace where they do receive professional encouragement, or leave the industry entirely.
The survey also found that 75 percent of companies use manual methods to track and deliver training. This can lead to required training sessions falling through the cracks, putting a company in jeopardy of being fined thousands for noncompliance — or worse, shouldering the liability of job site workers who lack necessary safety skills.
Adding or upgrading to a technology-based upskilling and training program can empower companies to tackle these challenges head-on and implement other effective strategies for workforce development.
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| Romco Equipment Co |
Annual employee reviews are vital to any industry’s success, but they can be especially tough to manage in construction. As projects move through different phases, workers may report to several supervisors. That’s why some technology-based upskilling and training programs use project-based reviews.
This paradigm shift allows each supervisor to input data about an employee throughout the life of a project. As a result, the current supervisor has an employee’s performance history in front of them — pulled directly from the cloud — at review time, without having to track down data from each previous supervisor.
During those performance reviews, it’s vital that supervisors discuss the employee’s future career path. When employees believe their employers are invested in their growth and advancement, they tend to be more loyal, and both safety and productivity improve.
But how can companies create personalized career paths that match each employee’s skills, interests, and aspirations, especially when they have thousands of workers?
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| Nueces Power Equipment |
| ASCO Equipment |
A technology-based upskilling program can analyze data on each employee to direct them toward an optimal career path. Such programs can also provide specific, position-based competencies so employees are evaluated in the correct areas and don’t waste time completing evaluations that don’t apply to them.
In the heavily regulated construction industry, there are training courses that every single employee must take, depending on state and local requirements.
With paper tracking, it can be extremely difficult to ensure every worker has undergone the required learning. Breaking those rules can be an expensive mistake. For example, OSHA fined one construction company more than $6.6 million for safety violations that occurred after employees were not properly trained.
Technology-based training programs store data in the cloud, enabling supervisors to see at a glance who hasn’t received the necessary training. This allows employers to get the training done faster and more efficiently, with the reassurance that onsite workers have the knowledge they need.
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| Romco Equipment Co |
By leveraging technology to get a broad overview of what employees know, companies can add new types of training that address overall knowledge gaps in their labor force. As employees learn to use new tools or equipment, quality and productivity improve. Turnover also drops since many employees see training as an investment in their future.
Consistently implementing new learning programs is key for construction companies to evolve as technology advances. Having employees without the skills to use the latest, most efficient equipment can affect the bottom line. Construction companies can’t risk being left behind as their competitors use technology to complete projects more cheaply, quickly, and efficiently. Plus, many workers — especially younger ones — favor innovative companies over tech laggards.
The construction industry is at an inflection point. The impending retirement of millions of workers may trigger a crisis if the U.S. doesn’t close its construction labor gap. ABC found that in 2025, the industry will need to attract nearly 454,000 new workers in addition to normal hiring. Construction companies must take action now to future-proof their own businesses and the industry as a whole.
Upskilling programs are a vital strategy for survival and growth in this evolving landscape. They not only address immediate skills gaps but also foster a culture of continuous learning and innovation. This enhances employee retention, attracts desperately needed new talent, and positions companies at the forefront of industry advancements. In addition, technology-driven upskilling initiatives offer unprecedented efficiency in tracking, delivering, and customizing training programs to individual needs.
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| Kirby Smith Machinery |
| Nueces Power Equipment |
Construction companies that prioritize upskilling are more likely to see improved safety records and ensure their employees complete all required safety training. This helps avoid fines and, more importantly, keep employees safer on job sites.
By embracing upskilling, companies can build a resilient, adaptable, and skilled workforce ready to tackle the challenges and opportunities that lie ahead.
Bryan May has more than 25 years of experience in the software training industry. He is the Vice President of Channel Development at Arcoro, a cloud-based human resources software company that offers solutions to help construction companies manage their workforce. Contact him at Bryan.May@arcoro.com.
